An unexpected result of the general elections, a planned move to change the economic standpoint of the country or change in the international political scenario; should such factors affect your decision of buying a residential flat or commercial place?
Well, the majority of people would answer affirmatively. Yes, socio-political circumstances do put an influence on our investment decisions. Sudden instability and turmoil in the environment creates an obvious sense of insecurity.
We suddenly become concerned about the future. Will the property give me expected returns? Or will it be a financial distress?
Experts believe that most of the times, such worries are baseless if you look at the investment from a long-term perspective.
The recent blues
8th June came with an utter dismay and shock for many people. The general election left the country with a hung parliament that nobody expected. In spite of being the largest political party in the parliament, Conservatives missed the bus.
Yes, the coalition government is the ultimate answer in a democratic setup; it creates a lot of disturbance at the political and social front.
In the backdrop of the aforesaid political situation, it is difficult to believe that the priorities of the government will remain with the realty market. Some critics believe that it will happen while some believe it won’t!
What will you do, as an investor?
Yes, what does it mean for the housing sector (or for the whole realty sector per se)? There are assumptions that the proposed coalition government won’t last long.
Earlier the Brexit effect and now the election results; both pulled down the rate of Pounds and made property investment a rollercoaster ride.
However, the recent trends showed that property market surged again. Average prices increased, and they are expected to increase further in the next quarter.
Hence, you need not worry about it from a short-term perspective also.
Long-term property investment is always lucrative
Most of the property gurus don’t believe that the short-term turmoil will put a big dent in the profits if investors have good patience and holding capacity. Yes, there is no dramatic implication. Even when everything is stable (political scenario, especially), property rates fluctuate.
It means there is a correlation between political stability and property rates; it is not something ‘larger than life’. It is part of life.
Therefore, look at the ‘big picture’ and remain focused on your buying decision. The longer is the horizon; the bigger is your profit.
London market is more sensitive to the political change
Being the capital, London is obviously more affected by the political change as compared to other towns. However, the market is equally resilient and robust as well.
Though there is an imbalance between supply and demand, the UK property market gives positive signals. The property is a class of assets that can withstand the instability. No wonder, it is considered a profitable mode of investment for small, medium and big investors.
These are not speculations, but hard facts based on the trends and past data.